1999 (9) TMI 479

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..... Order-in-Appeal Nos. 69 70/99 dated 13-4-1999 by which the duty amount directed to be pre-deposited is Rs. 12,03,087/- with an equivalent amount of penalty under Section 11AC and further penalty of Rs. 6,00,000/- in one case and duty amount of Rs. 14,13,068/- with equivalent amount of penalty under Section 11AC and further penalty of Rs. 1500/- in the second appeal which was in respect of demands raised for two different period 1992-93 to 1996-97 on the ground that the appellants had manufactured and cleared UPS System from their factory premises and the battery for the said system purchased from battery dealers and integrated with the UPS at the customer s premises by them and at the time of clearance of the system, duty was paid only on .....

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..... ly by purchasing it from battery manufacturer and the customer was putting it from his side. Therefore, the judgment rendered in the case of Kerala State Electronics Development Corporation v. CCE (supra) is applicable in so far as this case is concerned. He submits that the judgment rendered in the case of Supra Hi-Tech Electro Equipments (P) Ltd. (supra) held that the value of the battery is includible only if the same is cleared along with UPS system. He submits that as stated by him, in their case it was not cleared along with battery, the UPS system, therefore they are not required to include the value of it in the assessable value of UPS. He submits therefore they have a strong prima facie case and hence waiver is required to be grant .....

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..... only if it is removed along with UPS system. He points out that as in their case it had not been removed along with UPS system, hence it is not includible. He also disputes the point raised by ld. DR that battery is an essential component of UPS system. Ld. Advocate further submits that it is well settled by larger number of Supreme Court judgments that value of bought out items is not required to be added in the assessable value as held by the Three Member bench of the Tribunal in the case of Diamond Clock Manufacturing Co. Ltd. v. CCE as reported in 1988 (34) E.L.T. 662 which has been approved by the Apex Court. 6. On a careful consideration, we notice that the issue is an arguable one and the judgments cited by the Counsel have taken a .....

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